I just want to take a quick poll...

[john]

Originally Posted by Kracka

You couldn't be more wrong here. Even if the small business owner doesn't ever decide to expand he will still have more money and therefore be spending more. The more money that is spent the more jobs that are required to make the goods and perform the services being purchased. No matter how you cut it, unless the person is stuffing money under his bed never to see daylight again, more money = more jobs.

Also, please keep in mind that sometimes in order to make more money you need to employ more people. Whether it be a web designer, tax accountant, or even the UPS man.

A lot of wealthy small business owners do just keep their money. I am an accountant and deal with them everyday. The risk is a HUGE issue for small businesses. Most of them do NOT go out and spend the money. They save it. This is even more clear the older the person is/if they started the business on their own.

There are alot of niche markets and that is why small businesses can be successful. Not everyone is going to grow, grow, grow like walmart. It just can't happen.

Even if you pretend that a person making more money will spend it, most of our goods come from overseas anyhow.

There is no proof that an increase in income will lead to an increase in spending or any growth in the company. There are too many large assumptions to be made.

Most small businesses are S-Corps, LLCs, or partnerships anyhow. They don't pay federal taxes, they are passed on to thier individual tax returns. MN charges a fee based on assets, sales, and payroll (called apportionment) which is relatively small (usually 0, $100, $300, $1000). The larger the apportionment the more the pay. I believe you have to have over $1 million (weighted total) for the $100 fee anyhow.

Small businesses are not killed by taxes. The owners bitch that they get charged with self employment taxes but a mediocre accountant can make the benefits of owning a business greater than the tax.

There is no tax that will ever kill a business or hold one back. If you don't make money, you don't have to pay the tax. Plain and simple.